Audited Statement of Results for the year ended 31.12.17

PLEASE SEE ATTACHMENT FOR FULL ANNOUNCEMENT Date: 7th March 2018 Contact: Paul Niven F&C Management Limited 020 7011 4385 FOREIGN & COLONIAL INVESTMENT TRUST PLC Audited Statement of Results for the year ended 31 December 2017 Summary of Results Share price total return of 21.0%, ahead of the market benchmark of 13.8% A net asset value total return of 16.9% (debt at market value) Annual Dividend per share up 5.6% to 10.4p, our 47th consecutive annual increase Discount of 4.3%, our lowest year end level for over 10 years The Chairman's Statement Dear Shareholder, As we begin to mark Foreign & Colonial's 150th anniversary and the launch of the investment trust industry, I am very pleased to report another year of strong gains with a total shareholder return of 21.0%. 150-year milestone Before reporting on our results for last year, we should perhaps take a moment to reflect on the last 150 years. It is remarkable to think that the original purpose of Foreign & Colonial Investment Trust has remained relevant throughout its long history. Providing exposure to a globally diversified portfolio of private and listed securities in one place, with access to all aspects of portfolio construction including portfolio allocation, stockpicking, manager selection and risk management at a reasonable cost, the investment trust that launched an industry 150 years ago is as relevant today as it ever was. Performance 2017 was a good year. Our Net Asset Value ("NAV") total return with debt at market value rose by 16.9% and our total shareholder return was 21.0%. We benefited from a rise in global stock markets with many indices reaching new record highs over the year. The 21.0% rise in our total shareholder return over the year significantly exceeded the 13.8% return of our benchmark, the FTSE All-World Index. Many of our investment portfolios delivered returns in excess of their market benchmarks and we benefited from exposure to technology related stocks and the outperformance of Europe, Japan and Emerging Markets. In another year of strongly rising equity markets gearing was also helpful to performance. Returns on our private equity investments were lower than on our listed equities but have been higher over the longer term. The majority of our private equity portfolio was invested over ten years ago and is therefore quite mature. I am pleased to say that this means our fund of fund programme is returning cash to us (?77.8m net in 2017). Delivering long-term growth in capital and income We look to deliver sustainable long-term growth in capital and income and I am pleased to say that over ten years our share price total return is 156.1%. This is equivalent to 9.9% per annum. Over twenty years it is 453.4%, which equates to 8.9% per annum. Dividend growth has also been strong, with an annualised rise of 5.9% in payments over the past decade and 7.4% over the past twenty years. Foreign & Colonial has paid a dividend every year for 150 years. Earnings and Dividends We continued to see good growth in income during the year helping to bring our Net Revenue Return per share up to 11.7 pence from 10.6 pence last year. While sterling had gained slightly against a number of major currencies by the end of the year, average exchange rate levels over the period were still down on 2016 and this was estimated to add to our income by ?3m (?6m in 2016). Special dividends treated as income were ?2.7m for the year, ?1.7m lower than last year. Shareholders will be asked to approve a final dividend of 2.7 pence per share payable on 1 May 2018. This will bring the total dividend for the year to 10.4 pence, a rise of 5.6%, which compares with the 3.0% rise in the Consumer Prices Index, and will be the 47th year of rising dividends. The 2017 dividends are fully covered by earnings and after payment of the final dividend the Revenue Reserves will significantly exceed one year's worth of dividends. The Board remains confident that our investment portfolio will generate revenue increases higher than inflation over the long term and our intention is to continue to deliver sustainable real rises in dividend per share to shareholders. Efficiency Control of costs continues to be a focus of the Board. Annualised costs are calculated as a proportion of net assets in accordance with two recognised yardsticks: the AIC's "Ongoing Charges", and the EU's new "Total Cost" measure introduced under PRIIPs. Ongoing Charges for 2017, which take account of expected future costs, have remained level at around 0.8% of net assets for the last three years. This calculation includes approximately 0.3% attributable to fees incurred within investee funds. Total Costs, as measured under the EU rules for the first time, include costs such as interest and transaction charges as well as the charges within investee funds and therefore show a higher figure of 1.06%. The Board and Manager will keep the Company's costs under continuous review. Discount The Board has long been committed to an effective discount control that provides benefits for shareholders in terms of reducing volatility and enhancing returns. The Company's discount to NAV started the year at 7.4% but, due to improved investor demand, narrowed to 4.3% by the end of the period further enhancing shareholder returns. The average discount level of 6.7% for the year was the lowest seen for over twenty years. The number of shares bought back by your Company in 2017 fell to a low level of 4.4m shares. The shares have recently been trading, and bought back, within a 5% discount level, which represents significant progress since adjusting our policy towards a 7.5% average attainment level in May 2015. The Board will continue to use buybacks for the benefit of shareholders in pursuit of a sustainably low deviation between the price and NAV per share in normal market conditions. No reference will therefore be made in future to a specific attainment level for the Company's discount. The policy and the levels within which it operates will continue to be reviewed with the aim of achieving our long-held aspiration of seeing the Company's shares trading at or close to NAV. Contributors to total return in 2017 % Portfolio return 15.8 Management fees (0.4) Interest and other Expenses (0.3) Buy-backs 0.1 Change of value of debt (0.1) Gearing/other 1.8 Net Asset Value total return 16.9 Decrease in discount 4.1 Share price total return 21.0 FTSE All-World total return 13.8 Source: F&C Key Information Documents In the context of investment performance, I should draw your attention to the EU's PRIIPs regulations which came into effect in January of this year. Their purpose is to improve the functioning of financial markets and increase customer protection. One aspect is the responsibility of our management company to produce a Key Information Document. Retail investors must now be directed to this before buying or selling shares in the Company. The document has been prepared according to a prescriptive methodology under the regulation such that the investment performance scenarios, based on recent past performance, may indicate future returns for shareholders that are too optimistic. This affects investment trusts generally and concerns have been expressed within the industry. It is to be hoped that these issues will be quickly resolved but, in the meantime, we will continue to remind shareholders to heed the maxim that past performance should not be taken as a guide to the future. The Board As part of the Board's succession plans, we are very pleased that Beatrice Hollond agreed to join the Board in September. She brings to us her significant experience in asset management and as a non-executive director, including investment trusts. "F&C Investment Trust" Our anniversary year provides a natural reflection point to ensure your Company continues its contribution and relevance in the modern world. As part of this, our marketing will increasingly take place under the Company's commonly used name "F&C Investment Trust"; the name with which Foreign & Colonial has always been synonymous. At the AGM shareholders will be asked to approve an amendment to the articles of association to enable the Directors to change the Company's corporate name to "F&C Investment Trust PLC" in the year ahead. Your Company, your future While we look forward to celebrating our 150th anniversary in a number of ways our greatest focus is, as always, on the future of the Company and the part that it continues to play within the investment sector as a whole. Despite the growth in the industry, there is still much work to be done in helping people understand the benefits of saving and investing for the longer term given that there is now a much greater need for individuals to take control of their future financial wellbeing. State and private pensions will simply not be able to provide a comfortable retirement. The fact that life-expectancy is so much longer, combined with the rapid rise in the cost of care in old age means that people will have to plan their savings for their future requirements much more carefully. Consequently, we will be focusing considerable effort during our anniversary year on supporting broader financial education across schools and universities. More than ever before the financial services industry needs to create simple to use, transparent investment products that help everybody in our society invest for the long term and secure their financial future. Your Company meets that need by being structured to provide a clear investment choice, particularly for smaller investors to have as a core holding of their investment portfolio. Indeed, we are confident that your Company will remain an appropriate choice for any longer-term investor, however small or large, for many years to come. In 2018 we face another period of political and economic uncertainty as well as market volatilty, but we still strongly believe that the best long-term investment approach is to hold a globally diversified portfolio of publicly listed and private equities such as Foreign & Colonial. Simon Fraser Chairman 6 March 2018 End CA:00315254 For:FCT Type:FLLYR Time:2018-03-08 08:31:31